Monday, November 16, 2009

OFFICE OF THE PCDA (PENSIONS), DRAUPADI GHAT ALLAHABADMOST IMPORTANT CIRCULARCircular No. 397 Dated: - 18.11.2008To,1. The Chief Accountant, RBI, Deptt. of Govt. Bank Account Central Office, C-7IInd Floor Bandre Kurla Complex, P.B. No. 8143 Bandre East, Mumbai-400051.2. All CMDs of Public Sector Banks3. CMD of ICICI Bank4. CMD of IDBI Bank5. CMD of Axis Bank6. CMD of HDFC Bank7. Military and Air Attache, Indian Embassy, Kathmandu, Nepal.8. The Defence Pension Disbursing Officers.9. The Treasury officer.10. The Pay and Accounts Office.11. Pay and Accounts Office, Government of Maharashtra, Mumbai12. The Post Master Kathua (J & K), Camp Bell Bay(Andaman & Nicobar)Subject: - Implementation of Government’s decision on the recommendations of theSixth Central Pay Commission – Consolidation of Pension of Pre 2006Armed Forces Pensioners /Family Pensioners.Reference: - GOI, MOD letter No. 17(4)/2008(1)/D(Pen/Policy) Dated 11th November2008(Available on the website of this office www.pcdapension.nic.in)-----*-----*----A copy of the Government of India, Ministry of Defence letter No.17(4)/2008(1)/D(Pen/Policy) dated 11-11-2008 regarding Implementation ofGovernment’s decision on the recommendations of the Sixth Central Pay Commissionfor revision/consolidation of pension of Pre-01.01.2006 Armed Forces Pensioners /Family Pensioners is forwarded herewith for immediate implementation. The Ministry ofDefence letter dated 11.11.2008 has also been uploaded on this office web sitewww.pcdapension.nic.in. The same may please be downloaded at your end in theabsence/non receipt of this Circular/Ministry of Defence letter without waiting hardcopyof the order and action taken accordingly.2. The following further clarifications/instructions are issued for smoothimplementation of Ministry of Defence letter on the subject:-Page 2 of 93. Applicability3.1. These orders shall apply to all the Armed Forces Pensioners/ Family Pensionerswho were drawing pension/family Pension as on 01.01.2006 under the PensionRegulations of the three Services/State Forces and various Government ordersissued from time to time, i.e. it covers all kinds of pension including disabilitypension granted under the Pension Regulation of the three services.3.2. The provisions of this letter do not apply to the following categories:(i) Gallantry awardees drawing monetary allowance in isolation attached to the award,such as Param Vir Chakra, Ashok Chakra, etc.(ii) UK/HKSRA Pensioners who were in receipt of pension in Pound Sterling as on01.01.2006.(iii) Persons in receipt of Compassionate Allowance, Guzara, Reservistallowance or any other allowance on which dearness relief is not admissible.(iv) Ex gratia payment @ Rs 600/- p.m. to reservists who opted lump sum gratuity in lieuof reservist pension at the time of release covered by Govt. of India, Ministry ofDefence letter No. B/39042/AG/PS-4(a&c)/1331/C/D (Pension/Services) dated29.12.2000.(v) Ex-gratia family pension at Rs. 605/- per month to the families of deceasedreservists covered by Govt. of India, Ministry of Defence letter No. B/40029/AG/PS-4(d)/1/B/D(Pension/ Services) dated 7.1.1999.(vi) Pakistan, Burma Pensioners who have been granted Ex- gratia Ad-hoc allowance.(vii) These orders do not apply to Public Sector Undertakings/Autonomous Bodyabsorbees who have drawn lump sum payment of pro rata pension, whose 1/3rdpension has been restored(Separate orders will be issued in respect of (iv) to (vii) above)3.3. Consolidation of all kinds of pension/family pension is to be done only in respectof those Armed Forces Pensioners including disability pensioners/family pensioners whoretired, invalided out of service /died before 01.01.2006. In other words, cases ofretirement, invalidment/death in service on or after 01.01.2006 are not covered bythese orders. The updation of pension of Post-01.01.2006 retirees will beauthorised through corrigendum PPO by PSAs concerned.4. Consolidation of Pension4.1. The retiring/service/ordinary/ special/mustering out/disability/ family pension ofexisting pre-1.1.2006 pensioners/family pensioners will be consolidated with effectfrom 01.01.2006 by adding together as envisaged in para 4 of the Ministry ofDefence letter dated 11.11.2008.A Table indicating the existing pension/family pension without dearness pension,the consolidated pension / family pension and monthly difference payable from 1.1.2006has been enclosed as Annexure – I to the Government letter dated 11.11.2008.ThePage 3 of 9column 1 indicates basic pension/family pension in respect of those who retired/diedprior to 1.4.2004 and column 2 indicates pension/family pension consisting effect ofdearness Pay (DP) in respect of those who retired / died between 1.4.2004 and31.12.2005.In few cases existing pension/ family pension sanctioned to those retired / diedbetween 1.1.2004 and 31.12.2005 as appearing in the PPO may not be available incolumn 2, in such cases pension/family pension may be consolidated provisionally withreference to the amount in column 2 to the next below the amount in PPO and case maybe referred to this office for issue of Corr PPO.4.2. The amount so arrived at in terms of Para 4.1 above will be regarded asconsolidated pension/family pension with effect from 01.01.2006. Since theconsolidated pension will be inclusive of commuted portion of pension, ifany, the amount of pension commuted will be deducted from the saidamount while making monthly disbursements from 01.09.2008.4.3. Ordinary family pension is being jointly notified in PPOs of service personnel ontheir retirement /discharge/invalidment. The family is paid the family pension asand when casualty occurs. Ordinary family pension where jointly notified and hasnot yet been commenced, will also be consolidated as per para 4.1 above andsuch consolidation of ordinary family pension should be endorsed on the PPOand payment/check register for payment to the family pensioner after casualtyoccurs.4.4. Improvement in pension of Personnel Below Officer Rank (PBOR):While consolidating the pension of PBOR under the three services, the ‘ExistingPension’ would mean the revised pension fixed as on 1.1.2006 in terms of theprovisions contained in this Ministry’s letter No 14(3)/2004-D(Pen/Sers)/Vol-III dated1.2.2006 and No. 14(3)/2004-D(Pen/Sers)/Vol-V dated 2.5.2006. This also includesadditional pension sanctioned to Havildar granted Honorary Rank of Naib Subedar.Therefore it should be ensured by PDAs before consolidation of pension of PBOR as perpara 4.1 of the Ministry of Defence letter dated 11.11.2008 that their pension has beenrevised as per this office circular No.350 dated 19.5.2006.4.5. Disability Pension/War Injury Pension :Pensioners who are in receipt of disability pension/war Injury pension whichconsists service pension/service element and disability element/war injury element, thepension shall be consolidated by taking the two elements. Where the degree of disabilityhas undergone change, the disability element for increased / decreased disability shallbe taken for the respective period of grant.The disability pension/war injury/ liberalized disability pension consisting ofservice element and disability element / war injury will be consolidated under thePage 4 of 9provisions of Para 4.1 above as an interim measure and will be treated as consolidatedinterim disability/war injury pension with effect from 1.1.2006. This interim disability/warinjury/ liberalized disability pension will qualify for grant of dearness relief at the revisedrates notified vide Dept. of P&PW OM No. 42/2/2008-P&PW(G) dated 12.9.2008.5. Minimum pension/family pensionWhere the consolidated pension/family pension in terms of paragraph 4.1 aboveworks out to an amount less than Rs. 3,500/-per month, the same will be stepped uptoRs. 3,500/-per month. This will be regarded as pension/family pension with effect from01.01.2006.6. Modified Parity6.1. The consolidation of pension will further be subject to the provision that theconsolidated pension, in no case shall be lower than 50% of the minimum of the pay inthe pay band plus the grade pay, military service pay (MSP) and ‘X’ Group pay (whereapplicable) introduced from 01.01.2006 corresponding to the pre revised scale fromwhich the pensioner had retired/discharged for 33 years qualifying service and for lesserqualifying service (including admissible weightage) it will be proportionately reduced.Similarly consolidated ordinary family pension, shall not be less than 30% of theminimum of the pay in the pay band plus the grade pay, military service pay (MSP) and‘X’ Group pay (where applicable) corresponding to the pre revised scale from which thepensioner had retired/discharged/died.6.2. For revision of pension/family pension in terms of the provisions as at Para 6.1above, concordance tables as per Annexure – II for Pre-1.1.2006 CommissionedOfficers pensioners/family pensioners and Annexure - III for PBOR pensioners/familypensioners are enclosed with Ministry of Defence letter dated 11.11.2008. AConcordance Table indicating equivalent rank held by Officers and PBOR in Army, Navyand Air Force and Group in which paid (in case of PBOR) is given in Appendix ‘A’ to thisCircular for guidance of PDA for determining minimum pension/family pensionadmissible as per Annexure-II or Annexure-III to Officers/PBOR pensioners and theirfamily. Revision of pension/family pension in all cases where fixation of pension as atPara 6.1 above is more beneficial than the pension arrived at as per Para 4.1 of the Govtletter, will be carried out by all the Pension Disbursing Agencies (PDAs) handlingpayment of pension to Armed Forces pensioners in terms of these tables and the revisedpension together with arrears thereof worked out and be paid immediately. Dearnessrelief at the rates notified from time to time will also be admissible on such revisedpension.7. The elements given in para 6 (i) & (ii) of above Ministry of Defence letter dated11.11.2008 e.g. Gallantry award allowance and Constant Attendance Allowance willcontinue to be paid as separate elements in addition to the pension/family pensionupdated under these orders. These payments will not be taken into account for purposePage 5 of 9of consolidation as well as for applying minimum limit of Rs. 3500/-per month topension/family pension.8. Since the consolidated pension/family pension arrived at as per Para 4.1 of ibidGovt. letter includes dearness relief upto average index level AI CPI 536, dearness reliefwill be admissible thereon only beyond index average 536 in accordance with therevised scheme of dearness relief for which orders have been issued separately byDepartment of Pension and Pensioners’ Welfare vide their OM No. 42/2/2008-P&PW(G)dated 12.9.2008. The four installments of dearness relief sanctioned earlier from01.07.2006, 1.1.2007, 1.7.2007 and 1.1.2008 in Department of P&PW’s OfficeMemorandum No. 42/2/2006-P&PW(G) dated 15.9.2006, No. 42/2/2007-P&PW (G)dated 29.03.2007, No. 42/2/2007-P&PW(G) dated 18.9.2007 and No. 42/2/2008-P&PW(G) dated 19.03.2008 respectively will be adjusted towards the arrears becoming due onupdation of pension/family pension as in Para 4.1, Para 5 and Para 6 above and revisedDearness Relief.9. Upper ceiling of pension/family pensionThe upper ceiling on pension/ordinary family pension laid down in the Departmentof Pension and Pensioner’s Welfare Office Memorandum No. 45/86/97-P & PW(A) (Part-I) dated 27.10.1997 has been increased to 50% and 30% respectively of the highest payin the Government (The highest pay, in the Government is Rs. 90,000/- since01.01.2006) i.e. Rs 45000/- per month and Rs 27000/- per month respectively.10. Pensioner in receipt of two pensionsIn the case of pensioners who are in receipt of more than one pension, the floorceiling of Rs. 3500/-per month will apply to each pension taken separately.Where only disability element is drawn in isolation, the minimum limit of Rs.3500/- will apply for 100% disability. For lesser degree of disability the minimum limit willbe proportionality less.11. Additional Pension for Pensioners/Family Pensioners of 80 years age andaboveNow a new element of additional pension/family pension is available to the oldage pensioners/family pensioners as per para 12 of ibid Govt letter. The additionalquantum of pension/family pension, on attaining the age of 80 years and above, wouldbe admissible from 1st day of the month in which his date of birth falls. For example, if apensioner completes age of 80 years on 1st of August or during the month of August2008, he will be entitled to additional pension/family pension w.e.f. 01.08.2008.The amount of additional pension will be paid directly by the PDA without anyindividual authorization where date of birth of pensioner/family pensioner is available inPage 6 of 9the PPO/Descriptive Roll and shown separately in the pension payment scroll/pensionpayment voucher/schedule/journal.In cases where the age of pensioner/family pensioner is not available on thePPO/office records, the same shall be obtained by the concerned Records office/ServiceHQrs from the pensioner/family pensioner. The authenticity of the age declared by thepensioner/family pensioner shall be verified by the concerned Records office/ServiceHQrs before submitting the claim to the PSAs concerned for notification of date of birththrough the corrigendum PPO. Such cases requiring issuance of Corr. PPOregarding date of birth, may be sent by name to Shri S.L. Pandey, Sr. AO, GrantsRevision Cell, O/o the Pr. CDA (P), Allahabad.12. Dearness ReliefThe consolidated pension/family pension as worked out in accordance withprovisions of Para 4.1 read with Para 5 and additional pension wherever payable underPara 11 above shall be treated as final ‘Basic Pension’ with effect from 01.01.2006 andshall qualify for grant of Dearness Relief sanctioned thereafter by the Government videMin of Pers PG & Pensioners, Deptt of P&PW OM No. 42/2/2008/P&PW(G) dated12.9.2008 (copy enclosed).13. Consolidation of Pension for employed/re-employed pensioners.In the case of the employed/re-employed pensioners who are not gettingdearness relief/dearness pension on pension, the notional dearness relief/dearnesspension which would have been admissible to them but for their employment/reemploymentwill be taken into account for consolidation of their pension in terms ofparagraph 4.1 read with Para 6 above as if they were drawing the dearnessrelief/dearness pension. The consolidated pension so arrived at will be the basic pensionwith effect from 1.1.2006. Dearness Relief beyond 01.01.2006 will, however, not beadmissible to them during the period of employment/re-employment.14. Methodology for Implementation and Reporting14.1. The Government has authorised the Pension Disbursing Agencies to paypension/family pension to existing pensioners/family pensioners at theconsolidated rates in terms of Para 4.1 and para 5 of Ministry of Defence letterdated 11.11.2008 without any further authorization from the concerned PensionSanctioning Authorities.14.2. A suitable entry regarding revised consolidated pension wef 01.01.2006 will berecorded by the Pension Disbursing Agencies in the Pension records of the pensioners’viz. Pension Payment Order, Check register/Pension Payment scroll register.An intimation regarding disbursement of revised pension may be sent bythe Pension Disbursing Agencies to Shri S.K. Bhatnagar, Sr. AO (AT), Office ofPage 7 of 9PCDA (P), Allahabad in format prescribed as at Annexure-IV to these orders so thatthe later can update its records. A copy of the said Annexure-IV may invariably beprovided by the PDAs to the pensioners concerned for their information. Anacknowledgement shall be obtained by the Pension Disbursing Agencies from Office ofPCDA (Pensions), Allahabad in token of receipt of the requisite Annexure-IV sent toPCDA(P) Allahabad.15. Arrears of Pension15.1. The arrears of pension/ family pension as a result of consolidation of pension willbe worked out by deducting consolidated pension plus revised dearness relief with effectfrom 01.01.2006 to 31.08.2008 minus(-) sum total of existing pension/ family pension,dearness pay and dearness relief drawn from time to time. In order to facilitatecalculation, a ready reckoner indicating existing pension/family pension, consolidatedpension and arrears payable per month with effect from 01.01.2006 for different periodare given in Annexure –I to the Govt order. Where a pensioner is not in receipt ofdearness pension/dearness relief, the amount indicated under column 4 to 9 of theAnnexure-I will not be used and the PDAs will themselves workout the amount ofdifference payable as arrears in such cases.15.2. 40% of the arrears on account of updation of pension/family pension under theseorders would be paid in the year 2008-2009 and remaining of 60% of arrears shall bepayable in the year 2009-2010.15.3. If a pensioner/family pensioner to whom benefit accrues under the provisions ofthis letter, has already died before receiving the payment of arrears, the Life TimeArrears (LTA) will be disbursed as per provision of para 16 of the Ministry of Defenceletter dated 11.11.2008.16. No commutation will be admissible for the additional amount of pension accruingas a result of this revision. The existing amount of pension commuted, if any, wouldcontinue to be deducted from the consolidated pension while making monthlydisbursements from 01.09.2008.17. Updation of pension/family pension under these orders will not affect the amountof Retirement Gratuity/Death Gratuity already determined and paid to thepensioners/family pensioners with reference to rules in force at the time ofdischarge/death.18. Any overpayment of pension coming to the notice or under process of recoveryshall be adjusted in full by the Pension Disbursing Agencies against arrears becomingdue on revision of pension on the basis of these orders.19. It is considered desirable that the benefit of these orders should reach thepensioners as expeditiously as possible. To achieve this objective, it is desired that allPension Disbursing Agencies should ensure that the revised pension and the firstPage 8 of 9instalment of arrears due to the pensioners in terms of these orders is paid to thepensioners or credited to their account at their earliest. Instructions regarding release ofsecond installment of arrears will be issued in due course.20. In cases where the PDAs are in doubt about the entitlement on revision inindividual cases or in regulation in minimum pension, revised pension for pensioners inreceipt of more than one pension, the concerned cases with full detail of pensioner andPPO No may refer by name to Shri S.L. Pandey, Sr. AO, Grants Revision Cell, O/othe Pr. CDA (P) Allahabad for advice/further action.(R K SAROJ)DY CDA (P)No.Grants/Tech/0165/Vol- VDated:- 18 .11. 2008Copy to: -1. The Dy. Secretary, Govt. of India, Ministry of PPG & P (Deptt. of P &PW), Lok Nayak Bhawan, New Delhi.2. Director (Pensions), Govt. of India, Min. of Defence D (Pen/Sers), Sena Bhawan,Wing 'A' New Delhi.3. Army HQrs AG's Branch, PS.4 (b) DHQ, PO New Delhi- 110011.4. AHQ GS Branch TA Directorate, DHQ PO New Delhi-110011.5. Naval HQrs, PP&A. DHQ PO New Delhi.6. Air HQrs, Vayu Bhawan, New Delhi.7. Air HQrs Ad PP & P - 3, West Block-VI, R.K. Puram, New Delhi - 110066.8. The CGDA West Block-V, R.K.Puram, New Delhi-110066.9. PCDA (Navy) No.1, Cooperage Road, Mumbai-400039.10. CDA (AF) West Block-V, R.K.Puram, New Delhi-110066.11. JCDA (AF) Subroto Park, New Delhi-110010.12. Director of Audit, Defence Service, New Delhi13. All Record Offices/Regiment/Corp.14. Bureau of Sailors, Cheetah Camp, Mumbai.15. Air Force Record, Dhaula Kunwa, Delhi Cantt.16. All Addl CsDA / Jt. CsDA in Main Office.17. All GOs in Main Office.18. The OI/C G1/(M), AT (ORs)-Tech, and G1/Civil (Tech).19. All SAOs/AOs/AAOs/SOs (A) in Gts/ORs Complex.20. The OI/C EDP Manual.21. The OI/C EDP Centre.22. Defence Pension Liaison Cell.23. All Sections in Main Office.24. Spare copies in file No. Gts/Tech/0148; 148;0162 & 015825. OI/C, G-2 Section26. OI/C G-3 Section27. OI/C G-4 Section28. OI/C, O & M Cell29. OI/C, Complaint Cell30. OI/C, Receptionist31. The OI/C EDP Centre (Website)32. The OI/C DPTI Local33. Spare.(R K SAROJ)DY CDA (P)Page 9 of 9Appendix-A(To circular No 397 dated 18.11.2008)Equivalent Rank of three services of Commissioned Officer of Army and equivalentranks in Navy and Air forceRank (Army) Rank (Navy) Rank (Air Force)Lieutenant Sub Lieutenant Flying OfficerCaptain Lieutenant Flt. LieutenantMajor Lt. Cdr Sqn LdrLt. Col (TS) Cdr (TS) Wg. Cdr (TS)Lt. Col (S) Cdr (S) Wg. Cdr (S)Colonel Captain Gp. CaptainBrig Captain Air CmdeMajor General Rear Admiral AVMLt. General Vice Admiral Air MarshalLt. General (Army Cdr/VCOAS Vice Admiral/FOC-in-C/VCNS Air Marshal (AOC-in-C/VCAS)COAS CNS CASEquivalence of ranks of Personnel Below Officer Rank in the three Services of ArmedForcesRANK:Army A.F NavySepoy AC/LAC Seaman-I & equivalentNaik Corporal Leading seaman & equivalentHavildar Sergeant Petty Officer/Mech-IV/Artificer-IVNb Subedar JWOCPO/Mech-III/Artificer-III Art-II/ Mech-II, Art-I/Mech-ISubedar WO Chief Artificer/Chief Mech-I & IIsub Major MWO Master Chief Petty Officer Artificer-I & IINCs(E)NCs(E), Tindal,Head Tindal -Honorary Rank:Army A.F NavySub/Hony Lt MCPO-II/Sub Lt WO/Hony Fly. OfficerSub Maj/Hony Lt MCPO-I/Sub Lt MWO/Hony Fly. OfficerSub/Hony Capt MCPO-II/Hony Lt WO/Hony Flt. Lt.Sub Maj/Hony Capt. MCPO-I/Hony Lt MWO/Hony Flt. Lt.Equivalence of Group in which paid:Pre- 01.01.2006 Post – 01.01.2006ArmyA or X XB, C, D, E, F, G or H YY or Z YNAVYA or Spl Gp or Artificers XB or C YY or Z YAIR FORCEI or X XII, III or IV YY or Z Y